How ERP Helps Distributors Manage Inventory

Enterprise resource planning (ERP) inventory management is an extremely important business process for distribution companies. By taking an integrated approach to operations and planning, ERP allows distributors to control their entire business, from inventory, shipping and receiving processes to finance, HR and more – all from a single location.

In a global marketplace, distributors face many challenges in improving daily workflows and keeping up with the demands of the market. One of the biggest challenges is, of course, the multi-faceted tasks involved with successful inventory management.

Built for business growth and simplifying inventory management complexities, distribution ERP software represents a distinct competitive advantage for wholesalers, here’s how:

Keeping on Top of Stock

Wholesale distribution ERP systems were designed for planning, logistics, operations, and personnel processes. As such, the detailed inventory data that an effectively integrated ERP produces gives distributors the ability to maintain a complete and comprehensive view of stock levels. These inventory systems give users the ability to organize inventory using any number of customizable designations for better inventory management, too.

Users set alerts to be notified when inventory levels dip below a specified point in order to initiate new purchase orders with vendors. Streamlining purchasing cuts down on operational wastes and ensures proper fulfillment.

Inventory Tracking

Distribution ERP helps users track inventory as it flows through the business. ERP systems are useful in batching and maintaining a bird’s eye view of the distribution center and granting valuable business insights into the way materials move through the operation.

With a clear view of surplus stock, distributors have the ability to stop future purchase orders to keep further backups from occurring. Management teams are able to make informed decisions regarding liquidations of any surplus stock in a way that makes the most sense for the business.

Learn more: Why it’s so important for your inventory system to support your business model

Additionally, because ERP grants such powerful and accurate inventory insights for distribution operations, when certain items aren’t moving and remain in the warehouse, those can be scaled back from their current fulfillment rate (or eliminated from the distributor’s offering entirely). This ensures the flow of materials and makes wasteful processes easier to identify.

An added benefit for distributors is the ability to track the flow of inventory by each customer instead of solely tracking by inventory type to help determine which customer relationships which are the most valuable to the business.

Cost Savings

A real benefit of wholesale distribution ERP lies in its cost savings. These systems afford management the ability to organize and, when necessary, restructure in order to optimize efficiencies. Operational wastes such as redundant ordering, poor inventory flow, and even mismanaged personnel scheduling are easier to correct with wholesale distribution ERP.

Read Next: Inventory Optimization and the Informed Business

Sage is the wholesale distribution ERP that easily integrates with existing supply-chain apps and saves time by making inventory management easy, seamless, and accessible.

Distribution operations have a real opportunity to reduce costs by streamlining these processes. If there’s a weak link in the inventory chain, Intacct helps distributors root out and overcome ongoing inconsistencies through a unified data pipeline and real-time dashboards. Inefficiencies simply have no place to hide.

Streamlining inventory management is a primary focus for every distributor and the right inventory software can help. Sage Intacct is the distributor’s solution for organizing products and stock while optimizing business processes.
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